There is a reason many are optimistic about the VSC Network and what it is going to bring Hive.
For those who are not familiar with this, we are dealing with a sidechain that will provide an assortment of features, including smart contracts. This is going to have its own node system separate from the Hive witnesses. Because of the smart contracts, a host of other features can be created, more in line with what Ethereum and the associated forks offer.
So far, much of the focus is on the wrapping of Bitcoin. This is a vital step forward since we are then able to link Hive to the outside world. Essentially, people will be able to swap HIVE for BTC (the other way also). This provides an on/off ramp for the ecosystem.
Since Bitcoin is most liquid cryptocurrency in terms of trading volume, this can extend the tentacles to basically every centralized exchange.
This is the first of many development associated with the network.
The Addition of More Coins/Tokens
What gets exciting is this model can be duplicated. It makes sense that Litecoin should not be far behind since it is similar code base. In fact, all the forks of Bitcoin should be similar.
Then we have the EVMs. This is a different code set but having wrapped ERC-20 tokens on VSC would really enhance the ability to swap.
Of course, none of this is useful without the tools to engage with the network. In a recent article, we see how this is starting to unfold.
This is an image of the interface being developed. It is similar to many that we see within the crypto industry. What is interesting is the fact that we see the Hive Backed Dollar (HBD) listed. This is an important currency for Hive, hence adding it from the start makes sense.
Naturally, none of this is useful without liquidity. Hence the ability to monitor what is available to conduct transactions.
There is another important point:
We aim to build a clean, fully functional DeFi interface for VSC. Initially, we will target Wrapped Bitcoin and HBD/Hive, however, as communities create their own tokens on VSC those will become supported as well.
Supporting the development of new tokens is crucial. This is something that is going to really enhance the ecosystem. We saw the impact of Hive-Engine. The problem there is the closed nature of the system. VSC is going to allow smart contract development along with individual node operation that is completely separate from the project team.
The Hive Financial Network
We have discussed the Hive Financial Network on many occasions. Here is some pieces that will serve as the foundation for that.
While the article mentioned DeFi, we see how that is incorporated into this evolving concept.
VSC is going to provide asset creation. This is exactly what we saw with the approval of a Bitcoin Spot ETF. Wall Street institutions are now generating derivatives of Bitcoin. VSC is no different.
The first step is to wrap BTC, basically creating a derivative. The potential exists to create any asset that is tied to whatever the creator wants. This is Wall Street 101. New products are created utilizing the value resident elsewhere.
Therefore, we will be moving towards a time when an assortment of assets can be built, for many different purposes. Some will provide leverage while others hedge. These can be fungible or non-fungible tokens. We could put together synthetic assets which is tied to the price of another asset such as a stock.
In other words, this puts Hive in the DeFi game in a much larger way.
We also have two key points to this:
- decentralization since both Hive and VSC do not have controlling entities over the nodes
- transaction fees
The latter is something that will sell. We know the hunt for lower fees is always taking place. With this system, we have a fee-less base layer with Hive. Then, we could see a similar system replicated on VSC where heavy traders stake HBD, eliminating the direct transaction fees.
Merging Of Finance And Social Media
The reason this is so important is because we are seeing the merging of finance and social media. Here is another topic that we discussed regarding Elon Musk and Twitter.
That effort now stands at 32 states. The plan is to bring a payment system to X, something requiring a money transmitter license from each state.
With Hive (Web 3.0), none of that applies.
What is necessary is the infrastructure to develop the services and integrate them into applications. VSC will provide this.
How about a lending platform based upon a community token such as Leo? That will be possible with VSC. What about a NFT system that rewards users on an application for certain activities? VSC can handle that. Want to swap a token earned for a synthetic tied to Apple stock? It could be built.
Basically, any social media activity could be incentivized (read monetized) and the assets tradeable, thus forming a market.
This is the future of the Internet. Social media gets a lot of the attention for obvious reasons. It is enormous along with being something people understand. That said, VSC is going to offer solutions with gaming, shopping, and an assortment of other industries. Once the tools are in place, innovation begins.
Inside Wealth Generation First
People often question what is required to bring in move users. Unfortunately, without the necessary pieces in place, it ends up being nothing more than the selling of vaporware.
That said, VSC is going to change things because we have the ability to generate wealth from within. The further expansion allowing the merging of social media and finance carries an impact most are underestimating.
Most of crypto has dead tokens. Obviously, many of the projects are the same so it is a natural outcome. However, what is an active project offers a host of other options for their assets. Right now, we can basically sell or stake. The latter offers some benefits, often generating a return.
From this point, what is there was a number of other options. Here is where wealth can explode. Even without newer people or money, we see more activity. In the data world, this builds value.
Of course, this will not remain a secret. As the wealth builds, others will take notice. After all, a lot of people obsess with those who live in the "fancy" part of town. It is no secret where the posh real estate is.
What happens if people are making bank on Hive (and VSC)? This is where others start to take an interest. Nothing sells better than success. We see this all the time. Sadly, it is often a scam with someone promoting some dream when he or she really has no idea how to achieve it other than offer a program.
With this, we simply are dealing with people engaging in different online activities, being rewarded, and seeing massive wealth generation through the assortment of DeFi tools created.
That is the potential of the Hive Financial Network.
Imagine the day when you can buy a house using a loan from an application that allows you to provide a token in your wallet as collateral.
Do you think that would get a bit of attention?